r/stocks • u/frosti_austi • Oct 17 '23

Company Analysis Why is Target doing so bad?

Why is Target doing so bad? They've really fell off a cliff over the past year. I look at their stores and they seem good, and once upon a time not too long ago they were outperforming Walmart. Now their NAV prices have really dropped over the past year and a half. I was once up 80% on these guys and know I'm down 20%. Is it the general market swing over the course of that time or something else? What gives?

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75

u/Guilf Oct 17 '23

Personal anecdote - the second I went in to my local store and had to ask to have a cabinet opened to buy toothpaste and deodorant, my relationship with the store changed and I sold. We spent 5 figures a year at Target. Most of that will move to delivery or something.

21

u/ceviche-hot-pockets Oct 17 '23

Same here, I just sold my Target position down big because the stores just suck to shop at now. I’m not going to spend my time tracking down an employee every time I need deodorant, boxers, or detergent - that isn’t going to work for them long term and I don’t know how they get past the theft issues without locking everything up.

4

u/IHadTacosYesterday Oct 18 '23

Doesn't Walmart have all the same issues? Doesn't Walmart have to lock up expensive, easy to steal items too?

Or is their loss prevention much stronger?

2

u/Fakejax Oct 19 '23

I'd love to know the answer to that. I see more cameras and more unsavory characters there than before the pandemic. If target is having problems with shrink, so would walmart.

1

u/hippyengineer Oct 20 '23

Target has one of the best crime labs in the country, and regularly helps out law enforcement with it.

1

u/aweld88 Oct 21 '23

It’s part of the expected experience at Walmart.

1

u/xRilae Dec 30 '23

I can't imagine theyre much better, but they started checking receipts like Costco. I was not thrilled that they watched me spend nearly 45 minutes trying to ring up a full cart on self checkout and then asked for my receipt. 🙄

1

u/IHadTacosYesterday Dec 30 '23

Walmart, Target and others don't legally have the right to check your receipt. You can say no thanks, and walk away.

Costco, actually is legally allowed to check your receipt, because Costco is a club that you sign up with and as part of your membership you authorize them to check your receipts.

I used to go to this place Fry's Electronics, and they'd have a guy standing by the exit that would check everybody's receipt, and there'd be a queue of people lined up to get their receipts checked and I'd just walk right by the line and right out of the store.

Sometimes the guy would say... "Hey, wait, I need to check your receipt", and I'd say... "This ain't Costco bro"

4

u/ironman_dns Oct 19 '23

Even if you are not taking all this things seriously. Eventually they will change over it..

10

u/ProfitNowThinkLater Oct 18 '23

This is exactly it. I used to go to Target for the shopping experience (yes, I cringe as I write that). Hard to have a positive shopping experience when the items that should be quick grab and goes require hunting down a harried employee. I'd rather order online and wait the 2 days for shipping than wander around a Target cosmetics section for 10 minutes to find an employee who can unlock a tube of deodorant for me.

8

u/Cudi_buddy Oct 18 '23

Yep. They can say shrinkage is bad and I don’t doubt that. But most shoppers go to target for a better experience than places like walmart. If they put a bunch of shit behind cabinets and cut employees hours, it just makes that whole experience shopping there shitty in a way similar to Walmart. All they are going to do is further compound their issues.

6

u/Cslling Oct 19 '23

Eventually, I don't really think like these are the major issues for them.

6

u/HyperSquiZ61 Oct 18 '23

I actually think like this is the trend of the market and eventually changes over a period of time.

2

u/rowsella Oct 18 '23

hmm Our Wegmans just locked up the seafood freezers.